- Shooting Star Reversal Candle
Shooting Star Definition:
A Shooting Star is a single bar bearish reversal pattern (regardless of real body color) developing after an up leg. A subsequent bar opens higher, trades much higher, but then returns to close near its open.
Conversely, if this candlestick is formed after a down leg where it opens lower, trades much higher, but then returns to close near its open, it is considered an Inverted Hammer.
Technical analysts use Shooting Star candles as potential beginnings to short trades. Additional confirmation in the form of another longer term bearish trade setup is often needed
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